redsn0w, the popular iOS 4 jailbreaking app, can jailbreak iOS 4.3.5 without issue.
Version 0.9.8 of the utility can Jailbreak devices, since iOS 4.3.4 and 4.3.5 just patched security issues and made few — if any — underlying changes, but does not support the iPad 2.
Source: The Mac Observer
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